Nairobi County Assembly has commenced investigations on suspected misappropriation of funds running into hundreds of millions by the Nairobi City County Alcoholic Drinks Control and Licensing Board.
This comes even as the county missed its revenue target for the first quarter of the current financial year 2022/2023, by Sh2.9 billion to collect Sh1.2 billion.
A report that was tabled before the Public Accounts Committee shows that unsupported receipts and payments by the board date back to the 2014-2015 financial year.
“In the circumstances, the accuracy, completeness and validity of the receipts and payments of Sh427,267,499 and 277,304,402 respectively could not be confirmed,” reads the report.
The report supports an earlier statement by the Auditor General that had flagged noncompliance by the board on submitting its financial statements.
The Auditor General pointed out that the board had not submitted its financials from the 2014/2015 Fiscal year to 2018-2019.
Further, the financial statements for the year ended 30 June 2020 were submitted to the Auditor General on June 21 more than one year and eight months after the statutory deadline
The committee’s deputy chairperson Robert Alai who is also Kilimani MCA said the committee will engage the County Attorney on why there are gaps in the law to allow spending without cheques and balances
“From the estimated Sh500 million collected the board spent around Sh300 million without receipts and balances. They produced block statements without any itemised spending,” Alai said.
The board failed to supply documents including receipt books, cash books, payment vouchers, ledgers and supporting audit schedules.
This is contrary to the provisions of section 100 of the Public Finance Management Act.
The data contained in the Quarter Revenue and Expenditure report for 2021-22 tabled in the county assembly show that City Hall collected Sh151.8 million from rates, single business permit Sh65.4 million and parking fees Sh373.9 million.
The committee said it will next week Tuesday summon those who allegedly authorised expenditure at City Hall during that period.
